EXPORT FLOW FOR LCL CARGO (PORT KLANG) console cargo Attachment 1A

1 1a EXPORT FLOW FOR LCL CARGO (PORT KLANG) console cargo Attachment 1A Importer & Bank Issue Purchase Order / Advise on LC (if required) Exporter Documents preparation -Invoice -Packing List -Shipping Instruction -Apply for Permit (if applicable) -Apply for Certificate of Origin (if applicable) 2 4 4a 4b 4c Shipping Agent/ Freight Forwarder/ Forwarding Agent Submit freight quotation and finalise freight charges 3 PIAs Approval of Export Permit (if applicable) Forwarding Agent Received instruction for cargo clearance Submit K2 electronically to SMK Issue Shipping Instruction to FF/SA Arrange for transport 6a 6b 6c 7 7a 5 5a Freight Forwarder Book container through SA Inform CFS/Warehouse operator on cargo consolidation Prepared IED (copy to FA/ Warehouse operator/sa) Depot Release empty container to CFS/Warehouse Operator Update details to port system & Shipping agent Transporter Received request of transport from FA Pick up cargo from exporter premise and deliver to CFS/ Warehouse. 8 9 9a 9b 9c 9d 9e PIA Inspection or endorsement of permit (if required) Customs Received K2 form - SMK-DNT K2 passed to PIA (if applicable) K2 vetted by Risk Assessment System to identify High Risk Cargo Receipt of Duty Payment (if applicable) Release of cargo Update to Port Operator on K2 release 10 10a 10b 10c 11 13 12 14 15 16 17 18 CFS/Warehouse Operator Receive instruction from FF Receive K2 from FA and LCL cargo from transporter Cargo consolidation Apply for drayage Port Operator Move container to container yard Load Container to vessel Shipping Agent/ Freight Forwarder Main FF declare ZB1 (Export) SA submit manifest (OBL) within 7 days FF submit manifest (HBL) within 7 days Advises shipping/freight charges FF pays shipping & freight charges and collect OBL MITI/Chambers Approval of Preferential /Non- Preferential COO (if required) A: Documents Preparation B: Inland Transportation & Handling C: Customs Clearance & Tech Control D: Ports & Terminal Handling 1

1 Importer issues purchase order to exporter. An LC advise is issued by the bank (for applicable shipments) - Purchase Order - Letter of Credit 2 Working Days (LC Advise) 1a Exporter prepares commercial invoice, packing list & shipping instruction (after the order is confirmed) -Shipping booking can be done in advance -Shipping instruction when all details are available - Invoice - Packing list - Shipping instruction 1 Day (Document Preparation) Overall 2 days - Apply for Export Permit from PIA (if applicable) can be done in advance. - Exporter applies for Certificate of Origin if applicable: i. preferential (e.g. CEPT) from MITI ii. non-preferential from Chamber of Commerce - Export Permit - COO - Invoice / PL / BL/ K2 required when applying for COO A 2. Submit freight quotation and finalise freight charges with shipper. - Receive and accept booking from shipper. - Provide shipper with booking confirmation. *Freight quotation and frieght charges can be done in advance Freight Quotation Shipping instruction 1 Day 3. PIA approves export permit (if applicable) Export permit No cost 2 4

4 Forwarding agent receives instruction from exporter for cargo clearance Export permit Overall 2 days No cost 4a. Prepare K2 Form and submit to Customs through SMK-DNT Net interface Invoice Packing list Response : 5-20 min EDI charges: RM 0.88 per KB RM30 A 4b. Issue shipping instruction to Freight Forwarder or Shipping Agent 20 min 4c. Forwarding Agent arranges for transport by submit ting request of transport to transport company 10 min 5. Freight Forwarder books container through Shipping Agent 5 min B 5a. Freight Forwarder informs CFS/Warehouse operator on cargo consolidation 10 min 5b. Freight Forwarder prepares IED with copy to Forwarding Agent, CFS/Warehouse operator and Shipping Agent (4 copy of IED) 20 min 6 Transport company receives request of transport from Forwarding Agent 10 min 6a. Lorry driver picks up cargo from Exporter s premise and delivers to designated CFS/Warehouse. 4 hours 3

6b. F.F Inform CFS/Warehouse operator on cargo consolidation 6c. F.F Prepared IED (copy to FA/ Warehouse operator/sa) 7. Haulier picks up empty container from Depot & delivers it to CFS/Warehouse 2 hours 7a Depot updates container number to booking in Port system and shipping agent. 10 min C 8 The relevant government agency will carry out cargo inspection or endorsement of the export permit if required. 9. Customs receives printed K2 declaration and supporting documents from Forwarding Agent. Supporting documents : invoice, packing list and IED. (Applicable to parallel transactions only not applicable in Paperless) 9a. K2 is channeled by Customs to PIAs if required. Inspection or endorsement of permit by PIA (if applicable) K2 Export Permit K2 Invoice, Packing List IED Export Permit K2 Export Permit 8 hrs (if inspection required) 2-5 min No 2 5 min No cost

9b. K2 declaration is vetted by Risk Assessment System and High Risk Cargo will be identified for control procedure (documentary check, inspection by scanning or physical inspection) 9c. Payment of duty or cess, where applicable, either by Electronic Fund Transfer or manual 9d. Approval/Release is given automatically after full payment of Duty is received by Customs K2 K2 Bank draft Cheque K2 COR (Paperless) Electronic : Nil Manual : 5 min EFT : 20-60 min No EFT charges : RM 8.00 per transaction 2-5 min No 9e. K2 release information is transmitted to Port Operator by Customs 10. CFS/Warehouse Operator receives instruction from Forwarding Agent on consolidation of LCL cargo 10a. Receive processed K2 from Forwarding Agent and LCL cargo from lorry driver. - 30 min No 10 min 2 hours D 10b. Consolidate cargo and stuff into container. 2 hours 10c. Apply for drayage Drayage Request Form 11. Port operator makes arrangement to move container from CFS/Warehouse to container yard 5 min 30 min 12. Main Freight Forwarder declares ZB1 to Free Zone Authority (ZB1 submitted electronically, paperless) ZB1 (export)

13. Port Operator loads container to vessel Load list 10 min 14. Shipping agent submits export manifest (OBL) electronically to Customs within 7 days after vessel departure. Manifest 5 min 15. Freight Forwarder submits export manifest (HBL) electronically to Customs within 7 days after vessel departure. Manifest 5 min D 16. Freight forwarder advises shipping & freight charges to shipper and/or forwarding agents Freight Invoice 10 min 17. Freight forwarders pays shipping & freight charges and collect OBL. Bill of Lading 10 min Freight forwarders will issue their HBL to exporters or Forwarding Agent 18. Approval of Preferential /Non- Preferential COO (if required) Certificate of Origin 30 min * taken for processes 14 to 18 are not measured as only internal processes once ship has departed

Legend (Export Flow): 1. LCL- Lesser than Container Load 2. LC Letter of Credit 3. PIA Permit Issuing Agencies 4. SA Shipping Agent 5. FF Freight Forwarder 6. CFS Container Freight Station 7. SMK Sistem Maklumat Kastam 8. OBL Ocean Bill of Lading 9. HBL House Bill of Lading 10.COO Certificate of Origin 11. IED Integrated Export Document

1 IMPORT FLOW FOR LCL (PORT KLANG) - console cargo Importer Documents preparation including (if applicable) -COO documentation from FTA Countries -Application of Import Permit - Collecting shipping documents from bank 3 2 3a PIAs Approval of Import Permit Forwarding Agent Received instruction for cargo clearance - including Document preparation (if applicable) FA prepare and Submit K1 electronically - SMK-DNT 4 4a 4b 4c 4d 4e 18 10 11 14 15 16 17 19 Shipping Agent / Freight Forwarders SA Submit Ocean Manifest to Customs/ Port Operator. SA to submit discharge list to Port Operator FF Submit House Manifest to Customs/ Port Operator Main FF submit OBL to SA to exchange for DO Main FF submit DO to CFS/Warehouse operator Individual FF/FA submit HBL to main FF to exchange for IID Importer/Bank Make Duty Payment thru Electronic Manual Customs Customs receive K1 electronically Risk assessment via CVI 12 13 PIAs Physical inspection if applicable Grant Approval in SMK Customs received printed K1& supporting documents Verification of exemption if relevant Assessment of goods Physical inspection if necessary Approve/Release K1 20 21 8 20a 5 6 7 9 22 23 25 Forwarding Agents Pay port charges to CFS/Warehouse operators Arrange for transport Port Operator Receive application for drayage. Move container to CFS/Warehouse Issuance of Gate Pass CFS /Warehouse Operator Receive DO from main FF Declare ZB1 (Import) to FZ Authority Submit request for drayage to Port Operator Break bulk (unstuffing) Verify LCL cargo release by Customs Issue endorsed IID to FA Return empty container to Depot. 24 Transporter Received IID/processed K1 from FA Pickup cargo and deliver to importer A: Documents Preparation B: Customs Clearance & Tech Control C: Ports & Terminal Handling D: Inland Transportation & Handling1

time 1 Importer prepares necessary documents, including : -COO documentation from FTA Countries (if applicable) -Collecting shipping documents from banks (if applicable) - Apply import permit from PIAs if applicable 2 PIA approve Import Permit (if applicable) Note: Total no of agencies: 25 Live implementation: 19 Paperless: 16 Coming on board: 4 under development (1 peninsular, 3 Sarawak) 2 Awaiting instruction from MOF COO Shipping Documents Import permit 3 Working Days 3 Working Days Pre-arrival No cost Import Permit Pre-arrival RM 5 (DNT) PIA s own Fees A 3 Importer instructs forwarding agent to clear cargo (together with supporting documents such as bill of lading, permit, invoice & packing list) 3a FA perform Document preparation if instructed by Importer Forwarding agents submit K1 electronically (CUSDEC) through SMK-DNT interface. Bill of lading Permit Invoice Packing list 1 day (all documents in order and for normal clearance) No cost K1 Preparation : 1 hr K1 : RM 0.60 per set EDI charges: RM 0.88 per KB (RM 5 per K1) 2 Forwarding charges :

4. Shipping agents send manifest (Ocean BL) to Customs and Port Operator within 24 hours of arrival of vessel, in accordance with Section 52, Customs Act. In practice, they are allowed to submit much earlier Manifest Pre-arrival 4a. Shipping agents submit Discharge List to port operator, 6 hours prior to vessel arrival. Discharge List Within 6 hours No cost 4b. Freight Forwarders send manifest (House BL) to Customs and Port Operator after Ocean BL had been submitted by Shipping Agent. - Freight forwarders issuing in house manifest within 24 hours 4c. Main Freight Forwarder submits Ocean BL to Shipping Agent to exchange for Delivery Order 4d. Main Freight Forwarder informs CFS/Warehouse operator on break-bulking through Delivery Order 4e. Individual Freight Forwarder or Forwarding Agent submits House BL to Main Freight Forwarder to exchange for Integrated Import Document. 5. CFS/Warehouse Operator receives instruction from Freight Forwarder on break-bulking. 6. Freight Forwarder or CFS/Warehouse Operator declares form ZB1 to Free Zone Authority Manifest Pre-arrival No cost Delivery Order Pre-arrival No cost Delivery Order Pre-arrival No cost IID Pre-arrival No cost Delivery Order Pre-arrival No cost ZB1 (Import) Pre-arrival No cost B 3

7. CFS/Warehouse Operator submits request for drayage to Port Operator 8. Port Operator approves application for drayage and makes arrangement to move container to relevant warehouse. 9. CFS/Warehouse Operator carries out unstuffing of container and break-bulking of cargo. 10. Customs computer system (SMK) automatically processes & registers K1 and sends response back to forwarding agent with registration number. Drayage Request Form K1 form 4 hours No cost 4 hours EMC charges: 20 : RM 65; 40 : RM 100 LPK & Terminal operator to provide inputs 4 hours Response : 5 20 min EDI charges: RM 0.88 per KB B 11. Risk assessment on K1 done by Customs Verification Initiative (CVI) Unit at Customs Headquarter to identify high risk consignments. - Electronic : Nil Manual : 5 min Process of doingno cost 4

12. Forwarding agent informs OGA of the arrival of cargo & submits the relevant permit to OGA. Physical inspection if applicable will be done at the relevant warehouse. 13. If no physical inspection, OGA will grant approval in SMK. K1 form PIA Permit OGA inspection time : 30 min No K1form 2-5 min No cost 14. Customs receives Form K1 and supporting documents for Customs clearance. a) Basic supporting documents : invoice, packing list and IID. b) Other supporting documents such as permit, Certificate of Origin, CJ5/CJ5A depending on transaction type. (Applicable to parallel transactions only not applicable in Paperless) K1 form Invoice Packing List IID. Permit COO CJ5/CJ5A BG/G Bond 2 5 min No cost B 15. For those consignments claiming Treasury/LMW exemption, K1 and supporting documents have to be submitted to Import Branch, North Port for the verification of exemption. K1, Treasury Exemption Letter 15-30 min depending on number of items No cost 5

16. Assessment of goods by Senior Customs Officer to determine duties/taxes payable which includes the following processes : a) Verification of particulars declared against supporting documents; b) Instruction for physical inspection if necessary; c) Classification/Valuation; d) Approval/Release. 17. Physical / CVI inspection involves the following processes : a) Preparation for inspection such as submitting IID to warehouse operator and engaging carpenter to open packages. b)actual physical /CVI inspection * CVI if applicable K1 form Invoice Packing List IID Permit COO CJ5/CJ5A K1 form IID Packing list 5-20 min No cost 30 min Labour Charges : RM 10.00 B 18. Forwarding agent pays import duty on behalf of Importer via : a) Electronic Fund Transfer (which is only available during banking hours); b) Duty Net (24 x 7, through CIMB); c) Financial Service Payment Gateway; or c) Manual (through cheque or bank draft) EFT Message : PAYORD, CREMUL, CREADV Manual: bank draft or cheque a) EFT : 20-60 min (different from Bank to Bank) b) Duty Net : Real time Basis c) Manual : 30 min EFT charges : RM 8.00 per transaction Actual charge: Rm15 per transaction 6

19. Customs receipts the K1 and Senior Customs officer signs off the K1 form to authorize release of cargo. (Applicable for parallel transactions) If paperless transaction: a) Auto-release after payment of duty/tax; b) Printing of Customs Official Receipt (COR) 20. Forwarding Agent pays port charges to CFS/Warehouse Operator Processed K1 COR 2-5 min No cost IID - No cost 21. Forwarding Agent contacts transport company and arranges for transport. Upon confirmation, documents such as Delivery Order (prepared by FA), IID and processed K1 will be passed to the transport company. Lorry will be sent to pick up the cargo. 22. CFS/Warehouse operator verifies IID/processed K1 submitted by lorry driver and after tallying proceed to load cargo onto the lorry. Delivery Order IID Processed K1 Copy of COR (paperless) - No cost 60 minutes No cost B 23. After loading, IID/Gate Pass will be endorsed by CFS/Warehouse operator and given to lorry driver/forwarding Agent for gate release. IID/Gatepass 5 10 minutes No cost 24. Lorry driver delivers cargo to importer. IID/Gatepass Delivery Order 25. CFS/Warehouse Operator informs Shipping Agent to return empty container to pre-designated depot. Depend the distance Feedback from Northport Within 12 hours According to the zones 7

Legend (Import Flow): 1. LCL- Lesser than Container Load 2. COO Certificate of Origin 3. FTA Free Trade Area 4. PIA Permit Issuing Agencies 5. FA Forwarding Agent 6. SA Shipping Agent 7. FF Freight Forwarder 8. CFS Container Freight Station 9. OBL Ocean Bill of Lading 10.HBL House Bill of Lading 11.DO Delivery Order 12.IID Integrated Import Document 13. SMK Sistem Maklumat Kastam 14. CVI- Customs Verification Initiative 15.OGA Other Government Agencies 16. SSR Special Service Request 17. COR Customs Official Receipt 8